Legislators looking at restoring lottery revenue for school construction

By Margaret Fisher / Staff Writer

Published: Sunday, May 18, 2014 at 05:22 PM.

SNOW HILL — School and county officials are hoping legislation will address restoration of the N.C. Education Lottery funds.

Rep. John Bell said he and Rep. Bryan Holloway are working on legislation to incrementally increase the percentage of lottery money that supports capital expenditures for schools. Originally at 40 percent of the net lottery profits, it is now at 20.8 percent and teacher salaries are 45.8 percent.

“And also, we want to take a look at the lottery surplus they have,” Bell said, “and see if we can direct some of that surplus, or maybe all of that surplus, back to the counties to help for existing school debt.”

That surplus of $52 million is the funds that were generated over and above what was expected, he said. In addition, he said there is support among the legislators and it is the top priority of county commissioners, statewide.

Jody Tyson, a lottery commissioner, said counties borrowed money to build schools with the expectation of getting lottery revenues, but the shifting around of lottery education funds has placed more of the debt burden on the taxpayers.

“I believe we need to stick strictly to the original allocation formulas,” he said, “specifically that money, the original 40 percent of the net profits that were allocated to go to the counties for school construction. And, you know, there’s been deviation. And understand, in tight economic times that deviation very likely saved teachers’ jobs because that’s where funding got shifted in new ways.”

Revenue generated for education from the lottery is 28 percent. The remainder goes to prizes, retailers and administrative costs.

SNOW HILL — School and county officials are hoping legislation will address restoration of the N.C. Education Lottery funds.

Rep. John Bell said he and Rep. Bryan Holloway are working on legislation to incrementally increase the percentage of lottery money that supports capital expenditures for schools. Originally at 40 percent of the net lottery profits, it is now at 20.8 percent and teacher salaries are 45.8 percent.

“And also, we want to take a look at the lottery surplus they have,” Bell said, “and see if we can direct some of that surplus, or maybe all of that surplus, back to the counties to help for existing school debt.”

That surplus of $52 million is the funds that were generated over and above what was expected, he said. In addition, he said there is support among the legislators and it is the top priority of county commissioners, statewide.

Jody Tyson, a lottery commissioner, said counties borrowed money to build schools with the expectation of getting lottery revenues, but the shifting around of lottery education funds has placed more of the debt burden on the taxpayers.

“I believe we need to stick strictly to the original allocation formulas,” he said, “specifically that money, the original 40 percent of the net profits that were allocated to go to the counties for school construction. And, you know, there’s been deviation. And understand, in tight economic times that deviation very likely saved teachers’ jobs because that’s where funding got shifted in new ways.”

Revenue generated for education from the lottery is 28 percent. The remainder goes to prizes, retailers and administrative costs.

Margaret Fisher can be reached at 252-559-1082 or Margaret.Fisher@Kinston.com . Follow her on Twitter @MargaretFishr.